nep-dcm 2010-01-30 papers

on Discrete Choice Models

Issue of 2010‒01‒30
one paper chosen by
Philip Yu
Hong Kong University

Incomplete Preferences in Choice Experiments: A note on avoidable noise and bias in welfare estimates By Mitesh Kataria; Jason F. Shogren

Incomplete Preferences in Choice Experiments: A note on avoidable noise and bias in welfare estimates

By:	Mitesh Kataria (Max Planck Institute of Economics, Strategic Interaction Group, Jena); Jason F. Shogren (University of Wyoming, Department of Economics and Finance, Laramie)
Abstract:	How does a choice experiment (CE) model derived under standard preference axioms perform for respondents with incomplete preferences? Using simulated data, we show how such miss-specification results in unnecessary noise and bias in welfare estimates, and can be avoided.
Keywords:	Choice experiment, Ordered Logit, Bias, Preference Axioms
JEL:	D61 Q51
Date:	2010–01–15
URL:	http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-003&r=dcm

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